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Mar 27, 2022
Pilgrim's Pride Q1 2022 Earnings Report
Pilgrim's Pride experienced significant growth in Q1 2022, driven by strong performance in the US and Mexico, despite challenges in Europe.
Key Takeaways
Pilgrim's Pride reported a strong first quarter in 2022, with net sales up nearly 30% year-over-year and adjusted EBITDA almost doubled. The company's US business led the way, with retail demand remaining stable and foodservice recovering to pre-COVID levels. Mexico also performed well, while the European business faced challenges due to market conditions and cost escalation.
Net sales increased by almost 30% year-over-year, reaching $4.24 billion.
Adjusted EBITDA nearly doubled compared to the prior year, with a margin of 11.8%.
The US business performed strongly, with retail demand remaining stable and foodservice recovering to pre-COVID levels.
Mexico rebounded from the previous quarter, experiencing better than expected demand.
Pilgrim's Pride
Pilgrim's Pride
Pilgrim's Pride Revenue by Geographic Location
Revenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.comMexico Revenue
CapyFin.com Forward Guidance
Pilgrim's Pride anticipates significant inflationary headwinds challenging the entire business, with increased costs in commodities, labor, logistics, and other operational inputs. The company plans to mitigate these impacts through operational efficiencies and growing with key customers, while continuing to monitor and adjust its business accordingly.
Positive Outlook
- Synergies and scale in the U.S., Mexico and the United Kingdom.
- Commitment to being the best and most respected company in the industry.
- Superior service levels to Key Customers.
- Improving overall mix.
- Combating inflation throughout the supply chain.
Challenges Ahead
- Significant inflationary headwinds challenging the entire business.
- Costs have dramatically increased in commodities.
- Costs have dramatically increased labor.
- Costs have dramatically increased logistics.
- Costs have dramatically increased in other operational inputs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income